NEW DELHI: Hero Future Energies, a renewable energy venture of Hero Group today announced the issuance of India’s first certified climate bonds for expansion of its wind portfolio, through its wind holding entity.

The entity, Hero Wind Energy Pvt Ltd, has secured a funding of Rs 300 crore through issuance of rated and secured non-convertible debentures.

“The proceeds from the fund raised will be invested in realizing our goal of 2.5 GW over the next few years. In January 2016, SEBI (Securities and Exchange Board of India) has also approved norms for issuance and listing of green bonds, such certifications bring transparency and will help meet the huge financing requirements worth $2.5 trillion for climate change actions in India by 2030”Sunil Jain, Chief Executive Officer, Hero Future Energies said.

Jain further said such competitively priced instruments are the way forward in reducing cost of financing and thereby cost of energy in India

Climate bonds are green bonds which require mandatory independent third party verification to provide additional assurance to investors about the climate benefit of their investments. The Climate Bonds Initiative, which is an international, investor-focused not-for-profit organisation, issues this certification.

“Achieving GOI’s goal of 175 GW of renewables by 2022 requires a multipronged approach, including innovative financing, newer structures and attracting global investors. As the certified green bond market scales up in India, it is likely to open up new avenues in renewable energy financing,” Rahul Munjal, Managing Director, Hero Future Energies said.